Max SBA loan amount

Last updated: May 1, 2026. The bill remains pending in the Senate. This post will be updated when there is a vote.

What Would the Made in America Manufacturing Finance Act Actually Change?

The Made in America Manufacturing Finance Act of 2025 is a bipartisan bill designed to boost U.S. small manufacturers by expanding their access to affordable capital. In early December 2025, the U.S. House of Representatives unanimously passed this act (H.R. 3174), which would increase the maximum SBA loan for small manufacturers — for 7a loans from $5 million to $10 million, and for 504 second loans from $5.5 million to $10 million.

Keep in mind that the SBA 504 loan is actually a 2nd mortgage or loan that accounts for just 30–40% of the total financing possible when using the SBA 504 program. This is important to understand, especially for small or mid-sized manufacturing businesses, because this new higher loan limit could allow “SBA 504 loans” that support total projects in the $30–40 million range or even higher for stronger borrowers — because the new higher SBA loan limit would allow lenders to offer 504 first mortgages of between $15M and $25M at 50–60% loan to value/loan to cost.

It should also be noted that SBA 504 projects in the $20M–$25M range are currently possible for all types of businesses — not just manufacturers — and some SBA 7a lenders will routinely lend between $7M and $9M for stronger borrowers in many industries, in spite of the 7a’s current “maximum” of $5 million.

Program	Current Limit (Manufacturers)	Proposed Limit	Max Total Project (10% down)
SBA 504 second loan	$5,500,000	$10,000,000	$25,000,000
SBA 7a	$5,000,000	$10,000,000	N/A (direct loan, all-in)
SBA 504 — standard non-manufacturer	$5,000,000	No change	$12,500,000

Can Manufacturers Finance Projects Over $10 Million Right Now — Before the Bill Passes?

Yes — and this is the point that tends to get buried in coverage of the pending legislation. Manufacturers have several meaningful advantages under current law that are worth using today.

Additionally, manufacturers have the added benefit of being able to access funding on a per-project basis right now, due to the current SBA rule that allows manufacturers to have multiple $5.5 million 504 seconds as long as each is financing a different project. In real terms, a U.S. manufacturer can have multiple 504 loans at one time — each 2nd loan up to $5.5 million — meaning a manufacturer could currently have multiple projects of $16+ million financed with 90% leverage through the SBA 504 loan program.

How Do the New Loan Limits Help Manufacturers Who Want to Expand or Acquire?

Under the current rules, the typical maximum SBA loan amount — whether a 7a first loan or 504 second — is $5 to $5.5 million. This cap has often constrained small manufacturers whose expansion projects or equipment needs exceed the limit. The Made in America Manufacturing Finance Act directly addresses this gap by doubling the maximum loan specifically for small manufacturing businesses. In practical terms:

SBA 7a loans: Qualifying manufacturers could secure up to $10 million (or more) in SBA-guaranteed 7a financing, versus the prior $5 million limit. The 7a program is versatile — it can fund all of the following:

• Land/real estate purchase
• Construction (especially ground-up projects and projections-based ground-up construction)
• Business acquisitions
• Business expansions
• Equipment purchases
• Vehicles
• Working capital
• Inventory
• Other small business needs

With a higher cap, manufacturers can finance larger initiatives — purchasing land and constructing a new manufacturing facility, launching a new product line, or acquiring a competitor and their entire production facility — all under one loan. This fills a critical financing gap for loans in the $5–10 million range that are often hard to obtain from banks without an SBA guarantee.

SBA 504 loans: The 504 program is a two-loan structure — a conventional first mortgage and an SBA-guaranteed 2nd mortgage — typically used for major fixed assets like real estate and heavy equipment. If this bill passes, the SBA-guaranteed 2nd loan limit rises to $10 million for eligible manufacturers. Previously, 504 loans for manufacturers had a cap of $5–5.5 million for the SBA-backed portion. With the higher limit, a manufacturer could finance projects on a much larger scale — constructing a new plant, purchasing and installing high-tech machinery — using the 504’s low-down-payment, mostly fixed-rate financing. A dramatic increase in the loan limit would recognize that the cost of competing in modern manufacturing — from advanced machinery to expanded production space — often exceeds the current SBA max loan amounts.

What Options Do Non-Manufacturers Have for Larger SBA Loans Right Now?

I don’t think many business owners know the true value of these programs unless they have a real need and find a savvy lender who has been there and done that — because the level of creativity that’s possible is unlike anything I know of on the conventional/traditional bank side.

Who Qualifies as a “Small Manufacturer” Under This Bill?

Truly large businesses cannot tap these higher loan limits — the Act targets small U.S.-based manufacturers. But the definition of “small” is actually quite large and often means mid-sized. The criteria include:

Industry classification: The business must fall under manufacturing NAICS codes 31, 32, or 33 — covering food processing, fabricated metal, machinery, high-tech manufacturing, and more. It needs to be a bona fide manufacturer producing goods.

Small business size standard: It must meet the SBA’s small business size standards for its industry. Manufacturing firms are generally considered small if they have 500 or fewer employees, though certain categories go higher — up to 1,500 employees for sectors like aircraft or semiconductors. In practice, about 98% of all U.S. manufacturing firms qualify as small businesses under the SBA’s definition. Virtually all but the very largest manufacturers would qualify.

Manufacturing businesses that could benefit from the new higher loan limits range from metal fabrication shops and food product makers to furniture, textiles, electronics assemblers, machinery producers, and more — any U.S. manufacturer that qualifies as a small business and produces exclusively in America.

What Are the Other Key Benefits Beyond Higher Loan Amounts?

Financing larger investments in equipment and facilities. By raising the SBA loan ceiling to $10 million, the Act would enable small manufacturers to finance major investments previously out of reach — buying expensive machinery, automating production lines, expanding or modernizing a factory, or constructing a new facility, all in a single loan package. With the current $5 million cap, many of these projects were only partially funded or not funded at all.

Supporting growth and competitiveness. The higher limit directly addresses the reality that the cost of competing in manufacturing has risen — whether due to advanced technology, larger space requirements, or supply chain shifts. Lawmakers have acknowledged that the previous $5 million cap is outdated in today’s industrial landscape. Small manufacturers will be better equipped to fulfill large orders, enter new markets, or ramp up production — effectively leveling the playing field against larger companies and importers.

Encouraging domestic production and reshoring. Because the $10 million loans are reserved for companies manufacturing entirely in the U.S., the Act creates a powerful incentive for local production — rewarding firms that have kept operations onshore and encouraging others to bring production back. Strategically, it could strengthen domestic supply chains, create U.S. manufacturing jobs, and reduce reliance on imports.

Improved refinancing options. Recent SBA rule changes have broadened refinancing eligibility and removed certain caps, allowing manufacturers to refinance debt even if the project has no expansion component (which was a previous requirement for a 504 refinance). A manufacturer paying a high rate to a private lender could refinance into an SBA-guaranteed 7a loan at a lower rate, extending the repayment term up to 10 years for equipment or working capital, or 25 years for real estate. If the Act becomes law, refinanceable amounts could reach $10 million or more.

Frequently Asked Questions

Commercial lending is complicated. SBA lending adds another layer of rules — and the max loan amounts are one of the most confusing aspects of this type of financing, because for reasons described above, the maximums are not the maximums. That said, SBA loans can be a huge advantage: higher leverage, longer terms and amortization, and often much more flexible underwriting on credit and cash flow. If these higher limits go through, it should help a lot of U.S. manufacturers.

If you’re a manufacturer or business owner and want to know more about the new possible loan limits — or more importantly, what’s possible right now — feel free to reach out to me at or call: 1-800-414-5285.